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Volkswagen profit jumps as it warns of a cooling auto market

FRANKFURT, Germany — Volkswagen says its profits jumped 44% in the third quarter thanks to a more profitable mix of vehicles in its lineup but warned that global car markets are slowing more than expected and lowered its forecast for annual sales. After-tax profit rose to $4.42 billion (3.98 billion euros) as revenues rose 11% to $68.27 billion (61.42 billion euros). The sales margin of 7.8% exceeded the goal of 6.5-7.5% as vehicles bringing higher profits took a larger share of sales. The Wolfsburg-based automaker pointed to the headwinds facing the industry by saying that it expects "vehicle markets will contract faster than previously anticipated in many regions of the world." It said sales would be "on a level" with last year's record of 10.8 million vehicles. Previously it had expected a slight increase. The company said its profits would be in the lower end of its forecast range. Global automakers are facing a slowdown in sales amid disputes over trade and from pressure in the European Union and China to develop and sell low-emission vehicles that require heavy investment in new technology. Ford and Renault have issued profit warnings in recent days, while Daimler, maker of Mercedes-Benz luxury cars, lost money in the second quarter and is expected to outline a cost-cutting strategy for investors on Nov. 14. Volkswagen is leading the push into electric vehicles in Europe by launching its ID.3 battery-powered compact car at prices it says will make zero local emission vehicles a mass phenomenon. The company was able to increase earnings in the quarter despite an 18% rise in spending on research and development.

German carmakers recall 630,000 diesel vehicles in Europe

Mercedes, Opel, Porsche, and Volkswagen will recall over 630,000 cars in Europe, according to reports Friday. No diesel car has been able to get under the legal emissions limit in real-world driving, according to a German government investigation. While only Volkswagen Group has been using a specific "defeat device", other carmakers have been playing with their exhaust gas recirculation (EGR) systems. Depending of the manufacturer, the systems have been cut off at a certain temperature. In a specific test cycle the systems operate to fulfill the legal requirements, but in everyday use the limits are exceeded. According to the magazine Der Spiegel, the supplier Bosch is behind this programming and has provided it to all German automakers. The mentioned carmakers have announced recalls, but many other manufacturers are also mentioned by name in the report, including Alfa Romeo, Chevrolet, Dacia, Fiat, Ford, Hyundai, Jaguar, Jeep, Land Rover, Nissan, Renault, and Suzuki. PSA Group, which produces Peugeot, Citroen, and DS cars, declared yesterday that its offices were raided following an emissions investigation. Related Video: News Source: AutocarImage Credit: Getty Images Government/Legal Green Recalls Mercedes-Benz Porsche Volkswagen Opel Emissions Diesel Vehicles diesel emissions investigation

Audi RS3 and Volkswagen Golf R face off in Evo test

Typically when an automotive publication pits two rivals against each other, they come from different companies. After all, why would one automaker – even one parent company – develop two distinct models to compete against each other? Well, the Volkswagen Group isn't like most. It pits Porsches against Lamborghinis, Audis against Bentleys, Seats against Skodas... all under the same roof. In the high-powered hot hatch market, it offers both the VW Golf R and the Audi RS3. The question is, which is the better drive? Evo put them both on track for a quick bout of sibling rivalry to find out. On paper it would seem like an unfair fight. Sure, both are based on the same platform and channel their power to the tarmac through all four wheels. But the Audi's five-cylinder engine packs considerably more muscle than the Golf's four: 362 horsepower and 343 pound-feet of torque trump 296 hp and 280 lb-ft. There's just no way around that – at least until the Golf R 400 comes along. The Audi, as you might have guessed, also costs substantially more than the Volkswagen. But that's not Evo's concern here. This is a cost-no-object, bare-knuckle throw-down. Watch the ten-minute video above to find out if the cheaper, less powerful Golf R can keep pace with its more upscale and brawnier brother. Related Video: News Source: Evo via YouTube Audi Volkswagen Hatchback Performance Videos vw golf r evo